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Tsy futures surged later in.........>

US TSYS SUMMARY
US TSYS SUMMARY: Tsy futures surged later in second half, mkt chatter of
fat-finger driven: mistaken order to buy 120,000 TYU triggered stops w/well over
200k TYU trades from 119-18 to 120-00.5. Long end scaled back nearly a full
point just as quickly. Equities sagged on rate rally but recovered late (emini
-2.75, 2773.25 vs. 2763.75L). Didn't start that way, but drop in US$ contributed
to rate rally (DXY -.20, 93.408; US$/Yen -.47, 109.72); gold higher (XAU +0.71
1297.11); West Texas crude higher (WTI +1.20 to 65.93).
- Tsys weaker on the open, taking cue from softer EGBs and tighter sovereign
spds, ignoring US$ weakness/break in correlation. 
- Little react to data om day, Better buying, short covering from real$, banks
out the curve as sovereign peripherals bounced (Italy off lows/climbing,
Portugal heating up as well) adding to risk-off move. MNI exclusive helped
trigger move: ECB should guarantee the sovereign debt of all member states,
particularly those facing unfounded default risk Decent deal-tied hedging
- Tsy cash/ylds: 2Y 100-00.25 (2.492%), 5Y 99-28.75 (2.772%), 10Y 99-16.5
(2.931%), 30Y 100-26.5 (3.082%).

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